Do You Need Full Coverage on a Used Financed Car?

When you’re looking to finance a used car from Wilson KIA, our team of experts work to ensure that you can enjoy a seamless car-buying process. As you’re on your used-car-buying journey, you may be wondering, “do you need full coverage on a used financed car?” Read on as our finance team walks you through the steps of buying a used car and whether or not full coverage is a necessity.

How to Finance a Used Car: What You Need to Know

Whether you live in Jackson or outside of Flowood, most states don’t require drivers to have full coverage before driving off of the dealership lot in a new or used car. However, when you’re financing a used car, lenders want to be assured that their investments are sound. As a result, most financial investors or banks will require you to have full coverage whether your vehicle is new or pre-owned. 

When financing any vehicle near Ridgeland, there are term agreements that detail the number of years you’ll need to pay a lender before you can receive the title and have total ownership of the vehicle. Meaning, if you apply for financing and receive a loan for the used vehicle for a term of 36 months, your vehicle’s title will belong to the lender for that period of time.

In most cases, full coverage insurance depends on the full term of the finance period. Based on the aforementioned example, that would mean your used car would have full coverage insurance for the 36 month period.

How Many Years Can You Finance a Used Car? 

Once you’ve found your next used Kia vehicle for sale, you’ll provide our finance team with some information so that they can contact lenders on your behalf to initiate the car-buying process. Some of the information we need from drivers is: 

• Valid Driver’s License
• Valid Car Insurance Card
• Any supporting financial documentation (i.e. last two pay stubs)
• Any existing vehicle documentation for your current vehicle (if applicable)

When you’re paired with a lender, a finance team member will go over the terms and conditions offered by the lender in order for you to finance your used car. Factors that the lender will take into the account will be your credit score and how much of a down payment you can put down. This will also impact how short or long your finance period can be.

Finance Your Next Used Car with Wilson KIA

If you’re still wondering how to finance a used car, how many years can you finance a used car, or if you need full coverage on a used financed car, contact us and we’ll be happy to help! Wilson KIA is here for you every step of the way as you secure the keys to your dream car.